making an offer on a property

Making an Offer on a Property

There are several ways you can buy property in Australia. The most common ways are at an Auction or by Private Treaty.  In this article we will cover how to successfully make an offer on a property being sold by Private Treaty.  It’s something that we as Buyers Agents do all the time and we have a few tips for you to improve your chances of success at the right price.  Read more

Recent years have seen a big rise in the number of Buyers Agents.  There is now more choice than ever, and like all professions some Buyers Agents are simply just better than others. So how do you choose your Buyers Agent?   Here are some tips that will help you decide how to choose a Buyers Agent. Read more

bidding at auction

Bidding at auction is nerve wracking for most people.

Over the last 20 years we have helped hundreds of our clients successfully purchase their dream home or investment property at auction and have put together a list of useful tips and strategies for bidding at auction. Read more

Well a lot has happened since 1999.  Back then John Howard was Prime Minister, the GST was passed into legislation, Australia won the Rugby World Cup and Sydney’s hail storm was one for the record books!  The world of Buyers Agents has undergone a world of change since then as well.  When we started out as Buyers Agents in Sydney in 1999 the term “Buyer’s Agent” did not exist.  There was not even a category available for us to advertise in the Yellow Pages.  Read more

Sydney property market

What is a Buyers Agent?  A Buyers Agent is a licensed real estate professional who specialise in searching, negotiating and purchasing property.  A Buyers Agent represents the buyers interests in a property transaction.

Crows Nest Woolworths

Where are the best suburbs to invest in lower north shore real estate?   Homesearch Solutions currently recommends the suburbs of Chatswood, Crows Nest & North Sydney as hot spots for your investment property purchase.  First of all this is because these are all areas that currently have appeal, great amenities and good proximity to […]

Beecroft buyers agent

Beecroft Buyers Agent

Acting for my client I’ve just exchanged on a Beecroft house at 10pm at home on a Saturday night, for a Canberra client relocating to Sydney.

Beecroft is a suburb in northern Sydney about 22km from the CBD. Beecroft offers great value, and there is a lot of interesting new retail and commercial development around the train station. Definitely a suburb to watch.

 

Interested in purchasing a home in Beecroft?  Give us a call.  We will give you assistance throughout the entire process of buying a property. We’ll help with everything from the property search to bidding on your behalf at auction or negotiating the best possible price.

Auction Story – a good end result for the underbidder!

I was the underbidder last Saturday for a renovated art deco unit in Randwick, as profiled on the 7 News link below.

Randwick sales are performing strongly and currently there’s a 100% clearance rate in the suburb.

All was not lost though as an owner of one of the other units in the building approached me after the auction. She was thinking of selling and she showed me her unit which was more highly renovated and had more outdoor space than the one I had been bidding on at the auction.

My clients loved the apartment, we negotiated successfully and my happy clients exchanged contracts today!

What is Underquoting?

Underquoting is when a selling agent states or publishes a price for a property that is less than their reasonable estimate of the property’s likely selling price contained in the agency agreement with the seller.

” quote them low, watch them go…  quote them high, watch them die….” 

This practice of underquoting can cause interested buyers to waste time and money on inspecting properties, getting reports and attending auctions based on misleading estimates of the selling price.

Buying a property is likely to be the biggest financial investment most people will ever make.   It’s a stressful time and buyers have the right to expect that a real estate agent will market a property ethically and professionally.

 

Underquoting Reforms for NSW residential property

To better protect consumers from the practice of underquoting, on 1 January 2016 Fair Trading introduced new laws.  These new laws require selling agents to draw on their skills to make a reasonable and fair estimate of the likely selling price.

They are required to have honest and fair dealings with all buyers and sellers.  The role of the seller’s appointed agent to achieve the highest possible price on the property owner’s behalf does not mean they should manipulate buyer interest with false price information.

The reforms that were made to the Property Stock and Business Agents Act 2002 were designed to provide clarity for buyers, sellers and agents.

1. Clearer rules for agents.   A key requirement is that agents must not give consumers understated or vague property prices (eg. promoting a property price as ‘offers above $450,000’)
2. Provision for more effective enforcement of the laws.  During an inspection by a Fair Trading officer, agents must be able to provide appropriate documentation to show that they have complied with the new laws.

Agents who commit an underquoting offence may be fined up to $22,000 and could lose their commission and fees earned from the sale of an underquoted property.

Be aware that, simply because a property sells for more than expected, this does not mean underquoting has occurred. Sometimes competitive buyer behaviour can result in a much higher sale price than what an agent could have reasonably estimated. However, the law now requires an agent to be able to show that their estimate was reasonable, up-to-date and evidence-based.

 

How to protect yourself from Underquoting

  • If the selling agent provides an estimated selling price, don’t take it as gospel. Use it as a guide only
  • Research recent sale prices for similar properties in the area you are looking in.
  • See how the property market works.  Visit as many different properties as you can.  Attend the auctions and get a feel for the level of competition in the marketplace.

What you should NOT do:

  • Don’t rely on prices that seem too good to be true. This is where your knowledge of the market (gained above) can help you.
  • Don’t rely on one person’s judgement.  you need to talk to other buyers and licensed property professionals and do your own research.

 

Engaging Homesearch Solutions Buyers Agent is a good way to protect you from underquoting.  Our extensive experience and property databases ensure you will have the most up to date pricing and market information available.